The following is from the Supervisors packet:TITLE OF PRESENTATION:
Presentation by the Yosemite Mariposa Tourism Bureau ("Bureau") Regarding a Possible Change to County Funding for the Bureau.
BACKGROUND AND HISTORY:
During budget hearings in 2015, the Board directed the Bureau to provide a proposal for annual funding that included operations for the Bureau and county visitors centers. Rather than the flat sum contribution used to date, the proposal was to be based on a fixed percentage of a moving three-year average of Transient Occupancy Tax (TOT) receipts.
The Bureau analyzed ten fiscal years of funding, beginning in Fiscal Year 2006 - 2007, for both the Bureau and the visitors centers. Over this period, the two organizations received an average annual contribution equal to 6.58% of the moving average of the previous three years of TOT receipts.
The Bureau is, therefore, requesting annual funding at 6.5% of the moving average of the previous three years of TOT receipts.
Currently, the Bureau receives $500,000 annually from the County and visitors centers in Mariposa and Coulterville receive a combined $187,000 for operations. Given the dramatic increase in TOT during the past two fiscal years, the 6.5% number will result in an increase over these "steady state" funding levels. The Tourism Bureau believes this increase is justified based on a new need to advertise during summer months.
The new Yosemite concessionaire contract made a significant change from the previous contract by prohibiting overbooking rooms in Yosemite National Park. The result is an overall occupancy (including outside the Park) dropping below 100% during the peak tourist season-- something that has not occurred for at least the past 20 years. Because decreased occupancy applies downward pressure on room rates, this change and its rippling effect could have a negative impact on both top-line lodging revenues and TOT receipts beginning in 2016. To mitigate this impact, the Bureau will now need to have a vacation season (Summer) marketing campaign something that has not been necessary in its nearly 10-year history.
During this agenda item, the Bureau will present details about:
The historical analysis showing average annual funding for the Tourism Bureau and Visitors Centers during the past 10 fiscal years at 6.58% of the moving average of the previous three years of TOT receipts
The initial and long-term effects of annual funding at 6.5% of the moving 3-year average of TOT receipts
New challenges facing the tourism industry, including the change in the concessionaire contract and increased competition
The strategy for the new vacation season marketing campaign
Source: Mariposa County
